Explore BrainMass
Share

Explore BrainMass

    Perfect Competition

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Why are businesses that operate in a perfectly competitive market considered "price takers"?

    © BrainMass Inc. brainmass.com October 10, 2019, 1:57 am ad1c9bdddf
    https://brainmass.com/economics/perfect-competition/perfect-competition-356011

    Solution Preview

    A perfectly competitive market is characterized by large number of sellers who sell homogeneous products i.e products cannot be differentiated. Size of each firm is very small as compared to market size. Thus ...

    Solution Summary

    Solution discusses why businesses operating in perfectly competitive market are price takers.

    $2.19